Question: Scott Duffney CPA has randomly selected and audited a sample

Scott Duffney, CPA, has randomly selected and audited a sample of 100 of Will-Mart’s accounts receivable. Will-Mart has 3,000 accounts receivable accounts with a total book value of $3,000,000. Duffney has determined that the account’s tolerable misstatement is $250,000.
His sample results are as follows:
Average audited value $990
Average book value 998
Calculate the accounts receivable estimated audited value and projected misstatement using the:
(a) Mean-per-unit method.
(b) Ratio method.
(c) Difference method.

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  • CreatedOctober 25, 2014
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